Interim Results
Galliford Try PLC
08 February 2007
GALLIFORD TRY PLC
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 (Unaudited)
HIGHLIGHTS
2006 2005 Increase
£m £m
• Revenue 606.8 372.2 +63%
• Profit before tax
- Pre exceptional* 20.7 14.0 +48%
- Post exceptional 21.6 14.0 +54%
• Earnings per share pence pence
- Pre exceptional* 5.3 4.4 +20%
- Post exceptional 5.6 4.4 +27%
• Dividend per share 0.8 0.7 +14%
• Chartdale Homes and Morrison Construction successfully integrated.
• Construction order book £2.3 billion - 90% on non price competitive basis
• Housebuilding completions of 593 units, sales in hand for the full year of
£212 million and landbank of 4,848 units all at record levels
• Net cash in hand of £26.6 million.
• Proposed acquisition of Linden Holdings plc announced separately today.
*An exceptional gain of £0.9 million (2005: nil) arises from a profit on the
sale and leaseback of a group property.
Commenting on the results, Greg Fitzgerald, Chief Executive, said:
'I am pleased to report record results for the six months to 31 December 2006.
We have successfully integrated Chartdale Homes and Morrison Construction,
consolidated our position as a major force in the building and infrastructure
markets in the UK, and are pushing forward with our strategy to expand our
successful housebuilding business.
The Board is very confident of reporting further progress at the full year.'
For further enquiries please contact:
Greg Fitzgerald, Chief Executive Galliford Try plc 01895 855219
Frank Nelson, Finance Director Galliford Try plc 01895 855226
Ann-marie Wilkinson Bell Pottinger Corporate
Geoff Callow & Financial 020 7861 3232
CHIEF EXECUTIVE'S REVIEW
Overview
I am pleased to report record results for the six months to 31 December 2006. We
have successfully integrated Chartdale Homes and Morrison Construction,
consolidated our position as a major force in the building and infrastructure
markets in the UK, and are pushing forward with our strategy to expand our
successful housebuilding business. We have also announced separately today the
proposed acquisition of Linden Holdings plc and an associated placing and open
offer to shareholders.
Financial Results
Profit before tax was up 54% on last year to £21.6 million (2005: £14.0 million)
with Group revenue up 63% at £606.8 million (2005: £372.2 million). These
figures reflect the first full six months following the acquisitions of Morrison
Construction and Chartdale Homes during the last financial year. Profit from
operations, stated before finance costs, exceptional items, amortisation of
intangible assets and share of joint ventures' interest and tax, was 46% ahead
of the same period last year at £23.6 million (2005: £16.2 million).
Profit on our construction operations was up 75% to £9.8 million (2005: £5.6
million) with a combined margin for our building and infrastructure divisions of
2.1% (2005: 2.0%). As forecast, there were no PFI projects planned to reach
financial close in the period and the costs of our PPP Investments business
therefore exceeded income, resulting in a loss from operations of £1.6 million.
Housebuilding profit from operations was a record £18.6 million with the margin
at 14.1% (2005: 13.9%).
Taking advantage of the continued strong market for commercial property
investments we entered into a sale and leaseback arrangement on a group property
in High Wycombe, generating cash proceeds of £3.1 million and a one off
exceptional profit of £0.9 million. Since the half year end we completed a
further sale and leaseback arrangement on the Group's office and depot at Wolvey
in Leicestershire, which will generate cash proceeds of £8.1 million and a one
off exceptional profit of £4.0 million.
Earnings per share before the exceptional profit increased by 20% to 5.3 pence
(2005: 4.4 pence). Post the exceptional profit the increase was 27% to 5.6 pence
(2005: 4.4 pence).
Our trading results have been underpinned in the period by strong cash
generation. Overall there was a £10.6 million inflow in the period resulting in
a net cash balance of £26.6 million at 31 December 2006 (2005: £8.9 million net
debt). Our construction activities, particularly within the building division,
maintained strong cash balances in the period.
Dividend
The directors have declared an interim dividend of 0.8p per share, a 14%
increase on last year, which will be paid on 12 April 2007 to shareholders on
the register at 2 March 2007. The directors remain committed to a progressive
dividend policy that takes into account both earnings growth and the need for
continuing investment in the business.
Building
The division achieved a profit from operations of £5.7 million on revenue of
£305.7 million, representing a margin of 1.9%. Cash generation has been
particularly strong during the period. The order book at 31 December 2006 has
been maintained at £1.1 billion, 89% of which has been secured on criteria other
than on a purely price competitive basis.
Markets for the Group's businesses in Scotland, central England and the south
have been good with 79% of the order book in the public sector. We have a
specific focus on education, with two of the largest PFI schools projects in
Northamptonshire and the Highlands of Scotland, several Academies and a number
of university and other further education contracts, as well as in health where
we have a good track record in delivering LIFT projects for primary care trusts.
In our other key sectors of commercial, interiors and leisure the business is
carrying out a growing workload. We are working on a number of significant
office and retail developments in Scotland and are expanding our operations in
the North of England from our well established business in the Midlands.
We have strength and depth in our regional operations, demonstrated by the
number of clients for whom we carry out repeat projects. Our objective is to
build on this resource by growing both in our existing areas of operation and by
extending our coverage.
Infrastructure
The division continues to build on its significant market presence in water,
highways, rail, ground remediation, engineering and renewable energy. A profit
from operations of £4.1 million on revenue of £166.2 million was achieved,
representing a margin for the period of 2.4%.
88% of the division's £1.2 billion order book represents work secured under long
term frameworks and is in the public and regulated sector. As a market leader in
the water sector we have also been successful in being awarded a number of
additional contracts from our framework clients, such as the recently announced
£32 million of work secured for Yorkshire Water outside our current AMP4
frameworks.
Our highways business carries out projects throughout the UK and has a number of
good opportunities in the pipeline. We started on site last month with a £24
million scheme from Parton to Lilleyhall under the Highways Agency's 'early
contractor involvement' form of contract and have, in joint venture with three
other contractors, been appointed preferred bidder on the proposed M74 extension
in Glasgow, a project for the Scottish Executive with a total value of circa
£300 million.
During the period we secured the £79 million contract to construct Europe's
largest wind farm at Whitelee, south of Glasgow and started work on the Olympic
Park remediation contract in East London. These awards demonstrate our growing
track record and capability within these expanding markets.
PPP Investments
The Group has a strong presence in education, health and accommodation PFI
projects. Work is currently progressing towards financial close on the LIFT
(Local Improvement Finance Trust) framework for primary care trust projects in
south east Essex, which is anticipated to provide £100 million of work.
We have carried out, for the first time, a directors valuation of the Group's
PFI / PPP portfolio. As at 31 December 2006, based on a discounted cash flow
basis, the valuation was £16.3 million which compares to the net book value of
£4 million. The Group's objective is to build up its portfolio of equity
investments with a significant percentage holding in each project, in order to
increase equity returns as well as providing long term negotiated construction
work.
Affordable Housing and Regeneration
We have made significant progress in growing our affordable housing and
regeneration activities in both our building and housebuilding divisions. We are
working on three major English Partnerships sites, in Camborne, Plymouth and in
Colchester where we are preferred bidder on a 430 homes scheme. We aim to
increase our penetration of the market across our areas of operation, basing our
service on the combined expertise we can bring to schemes from both our
housebuilding and contracting skills. In January we announced the award of a 440
homes regeneration scheme in Grimsby for Shoreline Housing, in which a key
factor was our presence as a local housebuilder, established last year with the
acquisition of Chartdale Homes.
We have recently secured two affordable housing contracts in our eastern area,
at Skegness and Soham, totalling 132 units and have a long term pipeline of
projects, particularly in the south west and to the east of London, where there
is good future potential.
Housebuilding
Good sales rates were maintained throughout the first half of the financial year
and the division achieved a profit from operations of £18.6 million on revenue
of £131.4 million, representing a margin for the period of 14.1%. Completions
were up 23% on last year at a record 593 units on an average selling price of
£221,000, compared to £203,000 a year ago.
The market for the first few weeks of 2007 has remained stable, despite the
increase in interest rates, with sales continuing to meet our targets. The
division has currently reserved, contracted or completed sales with a record
value of £212 million, 23% up on the same period last year, and in line with the
progress required to meet our sales objectives for the full year to 30 June.
We are encouraged by the resilience of the market to short term economic
changes. With the fundamental economic factors underpinning the demand for
housing unchanged, as well as the continuing housing shortage, we are pressing
ahead with our expansion plans for the business. Achieving our growth targets
depends on increasing the number of sites in our landbank as well as the average
size of site, while maintaining our focus on individually designed developments
and industry leading levels of customer satisfaction. Since the year end we have
continued to secure good quality sites across our regions and currently our
landbank stands at a record 4,848 units compared to 2,447 at the same point last
year and 4,022 on 30 June 2006.
Health, Safety & Environment
We remain committed to achieving continuing high standards of health and safety
as an integral part of our business performance. For the 12 months to 31
December 2006 our accident incident rate of 7.21 per 1,000 people remained well
below the industry average. During the period we have restructured our health,
safety and environment team across the Group to match the needs of our
significantly larger business and to ensure all our operations receive an
appropriate level of service.
Board Structure
The board has decided to reorganise its structure with effect from 31 March 2007
to take account of the significant increase in the size of its business
following the Morrison Construction and Chartdale Homes acquisitions last year
together with the proposed acquisition of Linden Holdings plc separately
announced today.
An executive board will be formed from the Group's existing executive committee
and will be responsible to the main board for the executive management of the
Group. It will be chaired by the Chief Executive and comprise:
Greg Fitzgerald, Chief Executive
Frank Nelson, Finance Director
Andy Sturgess, Managing Director Building Division
Ken Gillespie, Managing Director Infrastructure Division
Ian Baker, Managing Director Housebuilding Division
Richard Barraclough, Company Secretary and Legal Director
Ian Baker joins the executive board having been Managing Director of Stamford
Homes in the eastern counties since 2003 where he was responsible for the
integration of Chartdale Homes. Ian, 36, originally joined the Group's south
west housebuilding business, Midas Homes, in 1995.
Subject to completion of the proposed acquisition of Linden , Chris Coates, 41,
currently the director of Linden responsible for its south east and Bristol
regions, will join the executive board. He will be divisional housebuilding
Managing Director responsible for the south east, with Ian Baker taking
responsibility for all other areas of the enlarged housebuilding division.
The Board of Directors of Galliford Try plc will therefore comprise the four
existing non executive directors, David Calverley, Chairman; Chris Bucknall,
Deputy Chairman; Jonathan Dawson and Amanda Burton together with the Chief
Executive, Greg Fitzgerald, and Finance Director, Frank Nelson. Richard
Barraclough continues as Company Secretary. The Group's Audit, Remuneration and
Nomination Committees are unchanged.
Prospects
The Group is performing well across all its divisions. In building and
infrastructure we have a significant presence in our key markets. Our affordable
housing and regeneration activities have grown significantly due to our success
in securing major regeneration schemes. Our track record in private finance
initiative projects places us in a good position to secure attractive equity and
construction returns.
We have embarked on a plan to build on our successful housebuilding model where
there is significant scope to increase our penetration and coverage across
markets in the south and east of England.
The Board is very confident of reporting further progress at the full year.
Greg Fitzgerald
Chief Executive
8 February 2007
CONSOLIDATED INCOME STATEMENT
for the half year ended 31 December 2006 (unaudited)
Half Year Half Year Year
to to to
31 Dec 31 Dec 30 June
2006 2005 2006
Notes £m £m £m
----------------------------------------------------------------------
Continuing operations
Revenue 3 606.8 372.2 851.5
Cost of sales (550.2) (336.2) (763.4)
----------------------------------------------------------------------
Gross profit 56.6 36.0 88.1
Administrative expenses (32.4) (19.5) (48.9)
Share of post tax (losses)/
profit from joint ventures (0.2) (0.2) 0.3
----------------------------------------------------------------------
Profit before finance costs 3 24.0 16.3 39.5
----------------------------------------------------------------------
Profit before finance costs,
amortisation and exceptional
items 23.4 16.3 38.0
Amortisation of intangibles (0.3) - (0.5)
Exceptional items:
Profit on sale and leaseback
of property 2 0.9 - 3.9
Restructuring costs - - (1.9)
Profit before finance costs 24.0 16.3 39.5
----------------------------------------------------------------------
Interest receivable 4 0.5 0.3 0.7
Interest payable 4 (2.9) (2.6) (5.7)
----------------------------------------------------------------------
Profit on ordinary activities
before tax 21.6 14.0 34.5
Taxation 5 (6.3) (4.1) (9.1)
----------------------------------------------------------------------
Profit for the financial period 15.3 9.9 25.4
======================================================================
Earnings per ordinary share 6
- basic 5.6p 4.4p 10.8p
- diluted 5.5p 4.4p 10.6p
======================================================================
Dividend declared per share
for the period 7 0.8p 0.7p 2.5p
======================================================================
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the half year ended 31 December 2006 (unaudited)
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£m £m £m
-----------------------------------------------------------------------
Profit for the financial period 15.3 9.9 25.4
Actuarial losses in pension
scheme (3.5) (3.2) (5.1)
Deferred tax on items charged
to equity 2.3 0.9 2.2
Current tax on items charged
to equity - - 1.4
-----------------------------------------------------------------------
Net losses not recognised in
the income statement (1.2) (2.3) (1.5)
-----------------------------------------------------------------------
Total recognised income for
the period 14.1 7.6 23.9
=======================================================================
CONSOLIDATED BALANCE SHEET
at 31 December 2006 (unaudited)
31 Dec 31 Dec 30 June
2006 2005 2006
£m £m £m
-----------------------------------------------------------------------
Non-current assets
Intangible assets 2.0 - 2.3
Goodwill 57.2 0.6 57.2
Property, plant and equipment 7.3 11.6 8.0
Financial assets - Available
for sale investments 1.2 0.5 1.2
Investments accounted for
using equity method 5.5 1.9 3.3
Trade and other receivables 0.2 0.2 0.2
Deferred tax assets 18.7 16.4 15.7
-----------------------------------------------------------------------
Total non-current assets 92.1 31.2 87.9
Current assets
Inventories 1.9 2.1 0.9
Developments 325.2 202.5 283.8
Trade and other receivables 180.7 93.1 184.1
Available for sale financial
assets - 4.8 -
Derivative financial assets - 0.1 0.1
Cash and cash equivalents 34.0 3.7 21.7
-----------------------------------------------------------------------
Total current assets 541.8 306.3 490.6
-----------------------------------------------------------------------
Total assets 633.9 337.5 578.5
-----------------------------------------------------------------------
Current liabilities
Financial liabilities -
Borrowings (6.3) (16.4) (3.8)
Trade and other payables (391.6) (195.3) (344.5)
Current tax liabilities (7.4) (4.6) (3.1)
Provisions (1.0) - (2.0)
-----------------------------------------------------------------------
Total current liabilities (406.3) (216.3) (353.4)
Non- current liabilities
Financial liabilities -
Borrowings (1.1) (1.0) (1.9)
Retirement benefit
obligations (49.7) (48.1) (47.1)
Deferred tax liabilities (13.5) (3.2) (13.5)
Other non-current
liabilities (34.2) (10.7) (42.1)
Provisions (0.4) - (0.4)
-----------------------------------------------------------------------
Total non-current liabilities (98.9) (63.0) (105.0)
-----------------------------------------------------------------------
Total liabilities (505.2) (279.3) (458.4)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Net assets 128.7 58.2 120.1
-----------------------------------------------------------------------
Shareholders' equity
Share capital 13.8 11.3 13.7
Share premium 49.0 2.3 48.7
Merger reserves 4.7 4.7 4.7
Retained earnings 61.2 39.9 53.0
-----------------------------------------------------------------------
Total shareholders' equity 128.7 58.2 120.1
Minority interest in equity - - -
-----------------------------------------------------------------------
Total equity 128.7 58.2 120.1
=======================================================================
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 31 December 2006 (unaudited)
Half Year Half Year Year
to to to
31 Dec 31 Dec 30 June
2006 2005 2006
Notes £m £m £m
-------------------------------------------------------------------------
Cash flows from operating
activities:
Net cash from operations 9 25.6 14.2 18.2
Net interest paid (1.1) (2.6) (4.6)
Tax paid (2.8) (3.0) (10.3)
-------------------------------------------------------------------------
Net cash from operating
activities 21.7 8.6 3.3
Cash flows from investing
activities:
Acquisition of subsidiaries
(net of cash acquired) (1.9) (1.1) (24.8)
Acquisition of investments in
joint ventures and associates (2.4) - (1.0)
Income from investments in
joint ventures and associates - - 0.1
Acquisition of available for
sale investments - - (0.7)
Purchases of property, plant
and equipment (0.9) (0.6) (1.6)
Proceeds from sale of property,
plant and equipment - - 11.1
-------------------------------------------------------------------------
Net cash used in investing
activities (5.2) (1.7) (16.9)
Cash flows from financing
activities:
Net proceeds from issue of
ordinary share capital 0.4 - 48.8
Purchase of treasury shares (1.3) - (1.9)
Repayment of borrowings (0.9) (0.1) (0.1)
Borrowing acquired with
subsidiary - (0.1) -
Dividends paid to group
shareholders (5.0) (3.3) (4.9)
Available for sale financial
assets - (1.4) 3.4
-------------------------------------------------------------------------
Net cash (used in)/from
financing activities (6.8) (4.9) 45.3
-------------------------------------------------------------------------
Increase in net cash and cash
equivalents 9.7 2.0 31.7
-------------------------------------------------------------------------
Net cash and cash equivalents
at beginning of period 18.0 (13.7) (13.7)
-------------------------------------------------------------------------
Net cash and cash equivalents
at end of period 9 27.7 (11.7) 18.0
=========================================================================
NOTES TO THE INTERIM REPORT
1 Basis of preparation
This financial information comprises the consolidated interim balance sheets as
at 31 December 2006 and 31 December 2005 and related consolidated interim
statements of income and cash flows and related notes for the six months then
ended of Galliford Try plc (hereinafter referred to as the 'financial
information'). This financial information has been prepared in accordance with
the Listing Rules of the Financial Services Authority and is unaudited.
In preparing this financial information, management have used the principal
accounting policies as set out on pages 37 to 39 of the Group's annual financial
statements for the year ended 30 June 2006. These policies have been
consistently applied to all the periods presented.
The Group has chosen not to adopt IAS 34, 'Interim financial statements', in
preparing its 2006 interim statements and, therefore, this interim financial
information is not in compliance with International Financial Reporting
Standards (IFRS).
The comparative figures for the year ended 30 June 2006 do not constitute
statutory accounts for the purposes of Section 240 of the Companies Act 1985. A
copy of the statutory accounts for the year ended 30 June 2006, prepared in
accordance with IFRS as detailed in the preceding annual accounts, has been
delivered to the Registrar of Companies and contained an unqualified auditors'
report in accordance with Section 235 of the Companies Act 1985.
2 Exceptional items
The profit on the sale and leaseback of one of the Group's properties has been
treated as exceptional in accordance with the Group's accounting policy. The
property had previously been held within developments.
3 Business segment reporting
Segment information is presented in the consolidated interim accounts in respect
of the Group's business segments which are the primary basis of segment
reporting. The business segment reporting reflects the Group's management and
internal reporting structure. Segment results include items directly
attributable to a segment as well as those that can be allocated on a reasonable
basis. As explained in the financial statements for the year ended 30 June 2006,
with effect from 1 July 2006 the Construction activities have been operating as
two divisions, Building and Infrastructure, hence the business segments have
been amended accordingly. Due to the complexity of the integration of the
Morrison Construction and PFI divisions into the Group for part of the previous
year, the comparative figures have not been restated as it is impracticable.
3 Business segment reporting (continued)
Construction PPP
Building Infrastructure Total Investments Housebuilding Group Total
£m £m £m £m £m £m £m
Half year ended
31 December 2006
Group revenue and
share of joint
venture revenue 306.6 171.4 478.0 0.2 131.4 3.3** 612.9
Share of joint
ventures' revenue (0.9) (5.2) (6.1) - - - (6.1)
-------------------------------------------------------------------------------------------------------------------
Revenue 305.7 166.2 471.9 0.2 131.4 3.3 606.8
===================================================================================================================
Segment result:
Profit/(loss)
before joint ventures 5.7 4.1 9.8 (1.6) 18.6 (3.2) 23.6
Share of joint
ventures' profit - - - - - - -
-------------------------------------------------------------------------------------------------------------------
Profit/(loss) from
operations * 5.7 4.1 9.8 (1.6) 18.6 (3.2) 23.6
Share of joint
ventures' interest
and tax - - - (0.1) (0.1) - (0.2)
-------------------------------------------------------------------------------------------------------------------
Profit/(loss) before
finance costs,
amortisation and
exceptional items 5.7 4.1 9.8 (1.7) 18.5 (3.2) 23.4
Amortisation and
exceptional items (0.2) (0.1) (0.3) - - 0.9 0.6
-------------------------------------------------------------------------------------------------------------------
Profit/(loss)
before finance costs 5.5 4.0 9.5 (1.7) 18.5 (2.3) 24.0
Net finance costs (2.4)
-------------------------------------------------------------------------------------------------------------------
Profit before tax 21.6
Income taxes (6.3)
-------------------------------------------------------------------------------------------------------------------
Profit for the year from
continuing operations 15.3
-------------------------------------------------------------------------------------------------------------------
PPP
Construction Investments Housebuilding Group Total
£m £m £m £m £m
Half year ended 31 December 2005
Group revenue and share of joint venture
revenue 274.2 0.7 98.5 0.3 373.7
Share of joint ventures' revenue (1.4) - (0.1) - (1.5)
-----------------------------------------------------------------------------------------------------------------
Revenue 272.8 0.7 98.4 0.3 372.2
-----------------------------------------------------------------------------------------------------------------
Segment result:
Profit/(loss) before joint ventures 5.5 (0.5) 14.1 (2.6) 16.5
Share of joint ventures' profit/(loss) 0.1 - (0.4) - (0.3)
-----------------------------------------------------------------------------------------------------------------
Profit/(loss) from operations * 5.6 (0.5) 13.7 (2.6) 16.2
Share of joint ventures' interest and tax - - 0.1 - 0.1
-----------------------------------------------------------------------------------------------------------------
Profit/(loss) before finance costs,
amortisation and exceptional items 5.6 (0.5) 13.8 (2.6) 16.3
Amortisation and exceptional items - - - - -
-----------------------------------------------------------------------------------------------------------------
Profit/(loss) before finance costs 5.6 (0.5) 13.8 (2.6) 16.3
Net finance costs (2.3)
-----------------------------------------------------------------------------------------------------------------
Profit before tax 14.0
Income taxes (4.1)
-----------------------------------------------------------------------------------------------------------------
Profit for the year from continuing operations 9.9
=================================================================================================================
* Profit from operations is stated before finance costs, exceptional items,
amortisation of intangible assets and share of joint ventures' interest and tax.
** Included with Group revenue is £3.1 million in relation to the sale of the
Group's property in High Wycombe, previously held within developments.
4 Finance costs
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£m £m £m
-------------------------------------------------------------------------------
Bank interest 0.2 0.9 2.3
Interest on unwinding of discounted
creditors 2.4 1.3 2.4
Net return on assets of pension
fund 0.3 0.4 0.8
Other - - 0.2
-------------------------------------------------------------------------------
Interest payable 2.9 2.6 5.7
Interest receivable (0.5) (0.3) (0.7)
-------------------------------------------------------------------------------
Net finance costs 2.4 2.3 5.0
-------------------------------------------------------------------------------
5 Taxation
The tax charge for the period reflects the estimated effective rate for the full
year to 30 June 2007 of 29% (30 June 2006: 26%).
6 Earnings per share
Basic earnings per share is calculated using the profit on ordinary activities
after tax and the weighted average number of ordinary shares in issue during the
year less the weighted average number of shares held by the Galliford Try
Employee Share Trust which have not unconditionally vested in employees. For
diluted earnings per share the weighted average number of ordinary shares is
adjusted to assume conversion of all potentially dilutive ordinary shares.
31 December 2006 31 December 2005
----------------------------- -------------------------------
Weighted Per Weighted Per
average share average share
Earnings number amount Earnings number amount
£m of shares pence £m of shares pence
---------------------------------------------------------------------------------------
Basic
Earnings attributable
to ordinary
shareholders 15.3 273,865,542 5.6p 9.9 222,802,899 4.4p
Effect of dilutive
securities:
Options 4,868,276 3,035,427
----------------------------------------------------------------------------------------
Diluted 15.3 278,733,818 5.5p 9.9 225,838,326 4.4p
---------------------------------------------------------------------------------------
Earnings adjusted for post tax exceptional items of £0.7million (Dec 2005:£Nil)
amount to £14.6million (Dec 2005: £9.9 million). The basic earnings per share
calculated on this adjusted basis is 5.3p (Dec 2005: 4.4p) (diluted 5.2p (Dec
2005: 4.4p)).
7 Dividends
The following dividends were paid by the Company:
Half year to 31 Dec 2006 Half year to 31 Dec 2005 Year to 30 June 2006
------------------------ ------------------------ --------------------
Pence per Pence per Pence per
£m share £m share £m share
--------------------------------------------------------------------------------------------
Previous period
final 5.0 1.8 3.3 1.5 3.3 1.5
Current period
interim - - - - 1.6 0.7
--------------------------------------------------------------------------------------------
5.0 1.8 3.3 1.5 4.9 2.2
============================================================================================
The following dividends were declared by the Company in respect of each accounting
period presented:
Half year to 31 Dec 2006 Half year to 31 Dec 2005 Year to 30 June 2006
Pence per Pence per Pence per
£m share £m share £m share
--------------------------------------------------------------------------------------------
Interim 2.2 0.8 1.6 0.7 1.6 0.7
Final - - - - 5.0 1.8
--------------------------------------------------------------------------------------------
2.2 0.8 1.6 0.7 6.6 2.5
============================================================================================
The interim dividend for 2007 of 0.8 pence per share was approved by the Board
on 8 February 2007 and has not been included as a liability as at 31 December
2006. This interim dividend will be paid on 12 April 2007 to shareholders on the
register at the close of business on 2 March 2007.
8 Consolidated statement of changes in shareholders' equity
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£m £m £m
--------------------------------------------------------------------------------
Balance at start of period 120.1 53.7 53.7
Actuarial losses in pension scheme (3.5) (3.2) (5.1)
Deferred tax on items charged to equity 2.3 0.9 2.2
Current tax on movement in equity - - 1.4
--------------------------------------------------------------------------------
Net expense recognised directly in equity (1.2) (2.3) (1.5)
Profit for the period 15.3 9.9 25.4
Dividends (5.0) (3.3) (4.9)
Issue of shares 0.4 - 48.8
Purchase of own shares (1.3) - (1.9)
Share based payments 0.4 0.2 0.5
--------------------------------------------------------------------------------
Balance at end of period 128.7 58.2 120.1
--------------------------------------------------------------------------------
9 Notes to the cash flow statement
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£m £m £m
--------------------------------------------------------------------------------
Cash flows from operating
activities:
Net profit after income taxes 15.3 9.9 25.4
Adjustments for:
Tax 6.3 4.1 9.1
Depreciation 1.4 0.8 1.5
Amortisation of intangibles 0.3 - 0.5
Profit on disposal of property,
plant and equipment - - (3.6)
Net finance costs 2.4 2.3 5.0
Share based payment charge 0.4 0.2 0.5
Movement in pension deficit (0.8) (1.1) (4.2)
Share of post tax losses/(profits)
from joint ventures 0.2 0.2 (0.3)
--------------------------------------------------------------------------------
25.5 16.4 33.9
Changes in working capital:
(Increase)/decrease in inventories (1.0) (0.7) 0.5
(Increase)/decrease in developments (40.0) 3.7 (1.2)
Decrease/(increase) in trade and
other receivables 3.6 7.4 (0.2)
Increase/(decrease) in trade and
other payables 38.5 (12.6) (16.7)
(Decrease)/increase in provisions (1.0) - 1.9
--------------------------------------------------------------------------------
Net cash from operations 25.6 14.2 18.2
--------------------------------------------------------------------------------
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£'m £'m £'m
--------------------------------------------------------------------------------
Cash and cash equivalents 34.0 3.7 21.7
Bank overdrafts (6.3) (15.4) (3.7)
--------------------------------------------------------------------------------
Net cash and cash equivalents 27.7 (11.7) 18.0
--------------------------------------------------------------------------------
10 Net cash/(debt)
Half Year to Half Year to Year to
31 Dec 2006 31 Dec 2005 30 June 2006
£m £m £m
------------------------------------------------------------------------------
Available for sale financial assets - 4.8 -
Cash and cash equivalents 34.0 3.7 21.7
Financial liabilities:
Bank overdrafts (6.3) (15.4) (3.7)
Other current - (1.0) (0.1)
Non current (1.1) (1.0) (1.9)
------------------------------------------------------------------------------
Net cash/(debt) 26.6 (8.9) 16.0
------------------------------------------------------------------------------
INDEPENDENT REVIEW REPORT TO GALLIFORD TRY PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 December 2006 which comprises the consolidated interim
balance sheet as at 31 December 2006 and the related consolidated interim
statements of income, cash flows and recognised income and expense for the six
months then ended and related notes. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
This interim report has been prepared in accordance with the basis set out in
Note 1.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the disclosed accounting policies have
been applied. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit and therefore provides a lower level of assurance.
Accordingly we do not express an audit opinion on the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Listing Rules of the Financial Services Authority
and for no other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2006.
PricewaterhouseCoopers LLP
Chartered Accountants
West London
8 February 2007
Notes:
(a) The maintenance and integrity of the Galliford Try plc web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the web site.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
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